Credit card firm American Express (AXP: sentiment, chart, options) just announced that it is going to cut 7,000 jobs, lower compensations, reduce operating costs, and scale back investments. AXP hopes these moves will save $1.8 billion in 2009, as the company tries to wade its way through the current financial crisis. AXP will incur a restructuring charge of $370 million to $440 million pretax, which comes out to $240 million to $290 million post taxes, during the fourth quarter. AXP stated, "The charge is primarily associated with severance and other costs related to the elimination of approximately 7,000 jobs or about 10 percent of the Company's worldwide workforce."

The Street is cheering this news, as the Dow component is nearly 4% higher in the wake of the report. Thanks to today's rally, AXP is in position to finish the session atop its 10- and 20-day moving averages for the first time since the end of September. What could be a more significant technical development is the fact that AXP's 10-day moving average is making a bit of a northward turn, which could put it on path for a bullish cross of its 20-day counterpart. If this formation were to come to fruition, it could signal further upside. Don't scoff, AXP has plenty of room to run between its current perch (at 26) and its 10-week moving average (at 32.50). A jump to face the 10-week trendline's resistance would result in a 2% gain for the stock.